What Amazon has bought is a niche chain of groceries, effectively giving it a network of distribution points for retail food distribution.

For not much more than they paid for Whole Foods they could have bought one of America's largest groceries (Kroger), and more than a couple of thousand large supermarkets, but they didn't, they bought a small niche grocer and paid little more than a rounding error on the Amazon corporation balance sheet for it, which is hardly an overwhelming vote of confidence in brick and mortar retail. And that really isn't "popping up all over the place". ..... I hear they opened a bookshop too, and "may open more"!

Groceries to books to ........ where will it end?

Opening a bookshop in today's world does seem to go against the grain. Maybe its the power of the people that makes it worth while.

Interestingly Walmart who have kept their online pricing the same as in store ....

That's not actually true. I went to buy a TV a couple of years ago, looking at Amazon, as well as Best Buy (a leading US retailer of home electronics and appliances), and at Walmart.

Walmart had what I wanted at a competitive price, and I could choose "pick up from store", so getting it pretty much immediately. I paid on-line and trundled off to the local Walmart to collect my purchase, .... where I found that the TV I had bought was marked up at $50 more than I had just paid!

Good job Walmart - screw the poor customers who buy in-store, and sell at a discount to the on-line middle classes!

That's not actually true. I went to buy a TV a couple of years ago, looking at Amazon, as well as Best Buy (a leading US retailer of home electronics and appliances), and at Walmart.

Walmart had what I wanted at a competitive price, and I could choose "pick up from store", so getting it pretty much immediately. I paid on-line and trundled off to the local Walmart to collect my purchase, .... where I found that the TV I had bought was marked up at $50 more than I had just paid!

Good job Walmart - screw the poor customers who buy in-store, and sell at a discount to the on-line middle classes!

Did I talk about a couple of years ago? I think I specifically stated "have started".

Did I talk about a couple of years ago? I think I specifically stated "have started".

I was only pointing out that they "have started" at least two years ago.

You also stated that on-line purchases would cost more than in store purchases, yet historically I noticed that the opposite was true, which I thought was interesting and worth noting. Maybe you don't agree.

I was only pointing out that they "have started" at least two years ago.

You also stated that on-line purchases would cost more than in store purchases, yet historically I noticed that the opposite was true, which I thought was interesting and worth noting. Maybe you don't agree.

Tradionally online is cheaper but pricing change makes sense though. If you already have the bricks and mortar locations, then distribution to these places in bulk is a lot more cost effective than distribution to the consumers front door.

And on top of that, once you get the consumer in the front door then the in store experience can go to work.

So Americans don't have book stores then? They have stores that stock books among other items. ....

No, US book stores, at least the surviving chain ones*, have diversified into many loosely related areas, commonly including a coffee shop, and selling records, CDs, and DVDs, children's toys, jigsaws, gift stationery, and hardware for viewing ebooks.

* Smaller, privately owned book stores are usually "just a book store".

No, US book stores, at least the surviving chain ones*, have diversified into many loosely related areas, commonly including a coffee shop, and selling records, CDs, and DVDs, children's toys, jigsaws, gift stationery, and hardware for viewing ebooks.

* Smaller, privately owned book stores are usually "just a book store".

So its not an American thing then. Or it "was" and has caught on elsewhere.

Well you better tell Amazon that. They have bricks and mortar stores popping up all over the place.

Worth noting that Amazon aren't going back to bricks and mortar - they are experimenting with models that plug that 'local' hole in their business model in innovative ways.

For instance, the grocery store that you just walk in, pick up the groceries and walk out (explicitly getting away from than human element beoz). They picked up Whole Foods because of their brand, and the possible margins. The bookstores are mainly at colleges, so a very particular stock set. And then we have the drones...

Pull it together and you can kind of see at the target they are aiming at. Local distribution centres capable of using drones to complete the delivery, accept returns, and act as a brand focus - all with the minimum of people involved and with their online system as core.

Their obvious next assault is on the groceries shop - and this is them gearing up and understanding how they can beat the likes of Coles at their own game.

And all being developed off the cash that would otherwise go to the government in taxes.